2019 Flashcards
benefits of being entrepreneur
•own boss- make all decisions, control over working life, (choose opening hours, employees, clients)
•can make money (employee limited to salary)
•following your dreams-can create dream job
•personal fulfillment- sense of achievement
steps in planning
•SWOT analysis- identify strengths, weaknesses, opportunities and threats
•set objectives- use swot results to set objectives. eg aer lingus did swot-price too high- objective to become low-cost airline
•devise strategies- plans of action that set out how to achieve objectives
organizing
•arranging all resources (human-employees, physical-equipment, financial-money ) in most suitable form to achieve aims
controlling
•staying in target, taking corrective action
steps
1. set goals- eg 10% increase in sales in next year
2. measure performance regularly- eg 1 month in sales have fallen
3. measure deviations & investigate- eg looks at fall and why sales fell
4. take corrective action- eg more advertising & price reduction
reasons for industrial disputes
•pay & conditions- post, overtime rates, holidays, hygiene & safety, heating
•dismissal or suspension of fellow worker
•employer refusing to recognize union- eg ryan air pilots
importance of business being environmentally friendly
•increased sales-growing demand for green products, sets apart usp, eg Boeing 20%les fuel
•lower costs-less waste (3rs), les in landfill
¥better image- good pr, increased customer loyalty eg.Body Shop
•compliance with laws-gives passing more green laws, going green allowed business to day ahead of curve
inflation impact
•high inflation is bad for business
•employees-higher wages (cost of living claims), business costs increase/lower profits/possible strikes, so bad ir
•products more expensive-consumers but less, falling sales, etc
•cost if all purchases for business increases- stock, energy, falling profits
interest rates
•cost of borrowing
•determined by ecb
•repayments on business loans will increase, increased costs & lower profit, company may not afford workforce so redundancies
cost of borrowing
(interest rates)
•lower interest rate cheaper to borrow as repayment low& consumers will borrow. high rates discourage business expanding. consumers with mortgages will have less disposable income of rate go up, lowering demand and sales fall
unemployment impacts
•unemployed-less money to spend, less demand, falling sales
•more people looking for fewer jobs-easier for business to find employees, can offer lower wages which reduced cost (min wage tho)
•govt- more social welfare payments, increase taxes, business less profit, more expensive to hire
•emigration- eg brain drain in 80/
benefits of enterprise in business
•innovation-improved/new/services, increasing sales/profits/business survival
•efficiencies-reducing costs through more efficient ways of producing. making more competitive
•creativity-employees can create without being punished, etc, morale
benefits of enterprise in community
•employment
•community engagement-local people involved, enriching lives
•wealth creation-for individuals & community
•quality of life- eg tidy towns
importance of good communication
•improves ir- listening to grievances & taking them out
•increased productivity-clear simple instructions ensuring workers know what’s expected
•better decision making- reg management meetings, bring skills/expertise
•upward communication encouragement- employee suggestions ,pos contributions to business
barriers of communication
•language-jargon/technical-use simple
•info overload-large volume info eg. emailing too much, use short snappy emails
•prejudice-if receiver doesn’t like sender
•timing-if message too late eg out of hours emails
•poor listening skills-distracted
•trust-skeptical if senders intentions
maslows hierarchy of needs
•physiological-basic needs water, food
•safety- safe&secure, fincancial
•social- friendship, acceptance
•self esteem- self respect, feel valued, respected by others
•self actualisation-personal growth, reaching potential
